BOROUGH OF POOLE

TRANSPORTATION ADVISORY GROUP – THURSDAY 15 FEBRUARY 2007

REPORT OF HEAD OF TRANSPORTATION SERVICES

ON THE CONNECT CONCESSIONARY FARES SCHEME

  1. Purpose of Report

1.1.To update Members with the position relating to the take-up and usage of the joint Connect concessionary fares scheme and the current position regarding the 2007/8 scheme.

1.2.To inform Members of the latest position with the 2008 nationwide concessionary fares scheme.

1.3.By improving access to local bus services, concessionary fares contribute to the Council’s priorities of improving the Health and Well-Being of its residents, in particular by supporting independent living, and promoting a Clean, Green and Safe environment.

  1. Recommendations

It is recommended that members note:

2.1The higher than expected take-up and use of the free travel Connect concessionary travel and the consequential cost pressures this has created.

2.2The on-going negotiations currently being undertaken with the bus operators regarding the reimbursement arrangements for the 2007/8 scheme.

2.3The latest position with regard to the 2008 national scheme.

And it is recommended that members approve:

2.4The published 2007/08 scheme as described in item 4, i.e. no changes be made to the current Connect concessionary fares scheme with respect to resident eligibility and scheme entitlement.

  1. Information

3.1Connect was established as a joint Borough of Poole/Bournemouth Borough Council concessionary fares scheme in April 2001. The scheme introduced met (and exceeded) the statutory minimum requirement for half-fare bus travel for residents of pensionable age and younger people with certain qualifying disabilities.

3.2From April 2006 the statutory minimum requirement was enhanced to provide free off peak local bus service travel for authority residents. As with the half-fare scheme, Travel Concession Authorities were encouraged to work together on joint schemes.

3.3The 2006 free travel Connect scheme again exceeded the statutory minimum requirement by permitting concessionary travel in both the Poole and Bournemouth areas, and on journeys that start or finish in this combined area (provided there is no change of bus). However, the 09:30 weekday time restriction was introduced to control costs.

3.4Additional funding was provided by Government through the Revenue Support Grant to fund the enhancement from half-fare to free travel. The Borough of Poole received an estimated £800,000.

3.5It was anticipated that there would be an increase in concessionary travel of up to 30% upon commencement of the free travel scheme. This was based on experience elsewhere and in particular the Welsh national free travel scheme. The actual increase has been significantly higher than this.

3.6A monthly comparison of passenger journeys under the free travel scheme with the estimated travel under the 2005 half-fare scheme, shows that for Poole this ranges from 44% in April to 140% in December averaging 78.88% over a 9 month period. This is illustrated by the graphs in Appendix A. It is estimated that there will be 1.97m concessionary travel bus journeys by Poole residents in 2006/7. This will result in a forecast overspend of £459,000 against the £1.4m budget.

3.7The greater than expected increase in concessionary travel is not out of step with many other urban areas of the country. However, there are a number of local factors that are thought to have contributed to the increase:

  • Significant investment by the bus companies in improved services involving new low-floor vehicles on principal routes (this has also resulted in a significant increase in bus use overall).
  • Simplified bus networks have been introduced by both major bus companies and these have been launched with comprehensive marketing campaigns. The new services are far easier to understand and use by people who have not travelled by bus before.
  • The bus operators’ strategy of developing these frequent, high quality direct services on main corridors has resulted in many areas across the conurbation (including large housing estates) being left without a commercial bus service at all. The Local Authorities have responded by the provision of additional feeder routes necessary for those passengers (often Connect card holders) unable to walk to access the main road services. This means many passengers are now making 4 journeys when they previously made 2.
  • The bus fares in the area are amongst the highest in the country and suppressed demand even under the half-fare Connect scheme. The advent of free travel has removed this barrier to use and many passengers are therefore travelling far more frequently.
  • The “Connect” concessionary fares scheme was already popular and had a relatively high take-up. However, extra marketing and publicity for the free travel scheme has boosted the total number of card holders. The number of Connect passes in circulation has increased from 18,000 in September 2005 to 25,000 in January 2007. Many of these residents have not used public transport for many years but are now developing a bus use culture.
  • High fuel prices over the summer together with relatively high car park charges has made many motorists consider the bus for at least some journeys.
  1. 2007/8 Connect Scheme

4.1The current 2006/7 Connect scheme is a one-year scheme due to end on 31 March 2007. A Joint Scrutiny Committee of Borough of Poole and Bournemouth Borough Council met in November 2006 to consider the latest position with the current year’s scheme and proposals for 2007/8. The group were also given information regarding the proposals for the 2008 national scheme.

4.2The Joint Scrutiny Committee considered the current 09:30 Monday to Friday time restriction. They recommended to retain the time restriction for the following reasons:

  • To avoid the additional costs that would fall on the scheme should additional vehicle capacity be required during the morning peak period (could be between £50-100,000 per annum for each bus service).
  • To make bus travel attractive to commuters in competition with the car, it is considered essential that delays are minimised. Whilst concessionary passengers do not require a ticket, they often take longer to board and alight than other passengers and the bus would need to stop more frequently.
  • If the time restriction were to be removed the bus operators would wish to review the reimbursement arrangements. Any Connect card holders (other than visually impaired people) currently travelling before 09:30 are required to pay the full adult single fare. If they were to use their Connect card the operator would only receive 67% of this under the current scheme.
  • The 2008 national scheme will have the 09:30 time restriction.
  • Arrangements have been established with the Royal Bournemouth Hospital and Christchurch Hospital for Poole Connect card holders to receive refunds for any essential bus travel before 09:30 requiring them to pay a fare.

4.3The Local Authorities were required to publish their proposed scheme for 2007/8 giving four months notice (by 1 December 2006). However, there is an opportunity to vary the scheme after this date provided the final scheme is published 28 days before the 1 April 2007 start date.

4.4The published scheme makes no changes to the categories of entitlement nor the concessions offered. However, the detailed reimbursement arrangements are the subject of negotiations with the bus operators.

  1. 2008 National Scheme

5.1From 1 April 2008 concessionary bus pass holders will be entitled to use their pass for free off-peak travel in all areas of England. The Concessionary Bus Travel Bill is currently progressing through the House of Lords. The following are working assumptions which are not yet agreed policy:

(a)Local Authorities will continue to assess residents’ eligibility and may determine the level of reimbursement to operators. Passes could be issued by a third party (e.g. Post Office or bus operators).

(b)Local Authorities will continue to be funded (mechanism to be determined).

(c)It is proposed that reimbursement for a trip under the statutory national entitlement will be the responsibility of the authority in which the boarding of the bus takes place.

(d)Reimbursement is to be determined locally on the basis of guidance issued by the Department for Transport.

(e)Local enhancements (e.g. no time restrictions) to remain area specific, not transferable to another authority area.

(f)Local Authorities can offer local enhancements to own residents and, if they choose, other pass holders travelling within the authority area.

(g)Entitlement will be limited to off-peak bus travel anywhere in England (including London).

(h)Eligible persons will be as defined for the current scheme.

5.2There will be flexibility in the new legislation to change the mechanism for the reimbursement of bus operators and the administration of concessionary travel. There will also be the possibility of extending the scheme to include Wales and Scotland.

5.3There are two principal concerns for Poole and Bournemouth. The first is that they attract significant numbers of visitors from other areas of the country and the cost of their travel will have to be met locally. If these visitors choose to travel in the area by bus, the financial impact will be considerable.

5.4Secondly, in (c) above, Poole and Bournemouth attract substantial visitors from the surrounding Dorset and Hampshire hinterland. Any travel undertaken by these visitors entirely within the Poole or Bournemouth area plus the return journey will be a cost borne locally. For example, a Wimborne resident travelling to Poole General Hospital could travel by bus to Poole Bus Station and then by a second bus to Poole Hospital. Of the four trips required to make the return journey, the Borough of Poole would pick up the cost of three. Conversely, there is relatively little demand from Poole residents to travel to Wimborne Hospital.

5.5Allocation of Government funding for the 2006/7 free scheme is considerably below expected annual expenditure. Unless funding is improved, there could be a similar shortfall in Government financing of the national scheme which will remain to be met by the local authority.

STEPHEN L TITE

Acting Head of Transportation Services

APPENDIX A – Usage of Poole Connect bus passes

Background Information

None

Officer Contact: John McVey (01202) 262221

1 February 2007

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